Mumbai: Top stock exchanges National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will discontinue equity as well as equity derivative trading in the security of Cairn India from 26 April, as the cash-rich oil producer has merged into its debt-ridden parent Vedanta.
Under the merger deal, shareholders of Cairn India will get one equity share of Vedanta and four redeemable preference shares of face value Rs10 and coupon 7.5%.
Further, Cairn India shareholders, as on record date, who will become shareholders of Vedanta, would also receive an interim dividend of Rs17.70 per equity share. The 27 April has been set as record date for the share swap.
Accordingly, in two separate notices, NSE and BSE have asked the investors and brokers not to deal in the equity shares of Cairn India with effect from 26 April. “...it is hereby notified that the following security will be suspended from trading with effect from 26 April, 2017,” NSE said in the circular.
BSE in its circular said: “Trading Members are advised not to deal in the equity shares of Cairn India Ltd with effect from the under mentioned date (26 April)”.
At the same time, the bourses in separate circulars said “no futures and options contracts will be available in the underlying Cairn for trading from 26 April, 2017 onwards”. Moreover, the bourses said the existing equity derivative contracts of Cairn “with expiry dates April 27, 2017, May 25, 2017 and June 29, 2017 will expire on April 25, 2017”.
Earlier this week, Cairn and Vedanta had announced the completion of the merger. The merger would help the metals and mining company Vedanta access to the cash of Cairn India, helping it cut debt.